July 7, 2009
ABB Grain lowers FY earnings forecast
ABB Grain Ltd. on Tuesday (July 7) downgraded earnings guidance for this fiscal year citing difficult market conditions, mostly slow demand from Asia for malt and for farm inputs in Australia.
Net profit this fiscal year ending Sep. 30 now is seen in a range A$43 million-A$53 million, down from a previously advised range of A$53 million-A$63 million, while underlying earnings before interest, tax, depreciation and amortization now will be in a range A$125 million-A$145 million with net one-time expenses totalling about A$8 million after tax, the company advised.
"We still expect to generate malt earnings equivalent to last year's record and anticipate the growth slowdown to be short term in nature as longer-term beer consumption projections remain strong," Managing Director Michael Iwaniw said in a statement.
